Current Events 20 May 2016

Indian firms may have to abide by strict global standards: EY

Indian companies will have to comply with stricter international norms following a rise in foreign investments in the country, according to a report.

The organisations would have to meet the requirements of foreign laws like U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act, according to the report by EY.

“Active measures are being progressively included to identify and seal any gaps within organisations’ compliance frameworks,” according to the report titled ‘Forensic Outlook 2016.’

Retail sector

The risk scenarios for the retail sector include bribery and corruption, supply chain leakage such as thefts or any dubious movement of inventory and counterfeiting, which will not only results in a loss of revenue but also expose companies to increased reputation and litigation risks.

Auto sector

Similarly, the report points out to a number of risks facing the auto sector, including violation of emission norms through the manipulation of prototype test norms and test results, bribery and corruption, and dealer frauds.

These include monetary and non-monetary benefits extended to government officials for managing emission test results, negotiating fleet sale contracts, obtaining bulk sale orders, managing non-compliance to various government licenses and regulatory requirements.

GS II: INTERNATIONAL

Obama’s Asia trip to reiterate ‘pivot’ doctrine

Barack Obama’s visit to Vietnam and Japan will reiterate the “rebalance to Asia” policy that many critics say has faltered after the initial push, a White House official has said. Mr. Obama’s visit will also resuscitate the memories of the U.S.'s difficult past of war and conflict with these two current partners in Asia.

Mr. Obama will be the first serving U.S. President to visit Hiroshima, one of the two Japanese cities on which the U.S. dropped atomic bombs in 1945. Many historians believe it was necessary to end the Second World War.

Focus on trade

The visit will also underscore the significance the Obama administration attaches to the Trans Pacific Partnership (TPP), a trade agreement that is the cornerstone of the U.S.’s Asia-Pacific policy, despite it being hotly contested in the ongoing presidential campaign. Maritimes disputes on the South China Sea will be part of the discussions at the G-7 meeting in Japan.

This trip is a manifestation of two key elements of the rebalance. First, building new partnerships with emerging powers in the region like Vietnam; and second, strengthening our treaty allies including, with Japan, which is at the heart of our Asian strategy